Tax Alert No. 31 [Revenue Memorandum Circular (RMC) No. 74-2024 dated 01 July 2024]

Prescribing the Mandatory Requirements for Claims for Credit/Refund of Taxes Erroneously or Illegally Received or Collected or Penalties Imposed Without Authority Pursuant to Section 204(C), in Relation to Section 229 of the National Internal Revenue Code of 1997, as Amended (Tax Code), Except Those Under the Authority and Jurisdiction of the Legal Group

Please be informed that RMC No. 74-2024 was issued to provide the guidelines and to prescribe the mandatory documentary requirements in the processing and granting claims for issuance of tax credit certificates (“TCC”) or cash refund of erroneously or illegally received or collected taxes under Section 204(C), in relation to Section 229 of the Tax Code, in line with the recently introduced reforms on tax refunds under Republic Act No. 11976 (also known as the Ease of Paying Taxes Act of 2023). This circular does not cover actions or requests for tax credit/refund based on writ of execution issued by the Court of Tax Appeals and the Supreme Court under the authority and jurisdiction of the Legal Group.

The following are the general policies provided in the Circular:

1. Pursuant to Section 204(C) of the Tax Code, the Commissioner of Internal Revenue may credit or refund taxes erroneously or illegally received or penalties imposed without authority, refund the value of internal revenue stamps when they are returned in good condition by the purchaser, and, in his discretion, redeem or change unused stamps that have been rendered unfit for use and refund their value upon proof of destruction.
2. The taxpayer-claimant shall submit the Application for Tax Credits/Refunds (BIR Form No. 1914) for claims under Section 204(C), in relation to Section 229 of the Tax Code, to the processing office that has jurisdiction over the taxpayer-claimant, to wit:
   1. The Revenue District Office; or
      
   2. The respective Large Taxpayers Audit Division or Large Taxpayers District Office under the Large Taxpayers Service.
3. Only applications with complete documentary requirements enumerated in the Checklist of Mandatory Requirements (Annex "A.1" of this Circular) which are filed within the prescribed two-year period after the payment of the tax or penalty, shall be received and processed by the authorized processing office.

The documents to be submitted by the taxpayer-claimant upon filing of the application for TCC/cash refund are also enumerated in this RMC.

You may access the full version of this issuance including the Annexes through the BIR website.

For any inquiry or request for assistance, please feel free to contact anyone from our Tax Services group. You may also reach us through this link.